HARBIN, China, Feb. 26 /PRNewswire-Asia/ -- China XD Plastics Company Limited ("China XD Plastics" or the "Company"), (Nasdaq: CXDC), the largest Chinese developer, manufacturer, and distributor of modified plastics primarily for use in the automotive applications in China, today announced that it has expanded its modified plastics production capacity to 100,000 tons.
In December 2009, China XD Plastics procured 12 additional automatic production lines equipped with state-of-the-art equipment made by top-tier international manufacturers. Currently, the total number of operational production lines is 31 compared to 19 at the end of 2008. The additional production lines have been installed and are at the final stages of trial production tests. The additional lines are expected to be fully commissioned at the beginning of the second quarter of 2010, ahead of the original schedule. The Company's realistic total annual production capacity is estimated to be approximately 100,000 tons, 42.9% increase compared to 70,000 tons in 2009.
"We are pleased to announce the completion of another stage of our capacity expansion plan. With the backdrop of record growth in Chinese auto market in 2009 and government's commitment to continue generating domestic demand for automobiles, we believe the outlook for our business remains positive," commented by Mr. Jie Han, Chairman of the Board and CEO of China XD Plastics. "We are confident in our ability to quickly bring these new facilities online, ramping up production to continue to grow our top and bottom lines. While Northeastern China is still our primary target market in the short term, the newly added production lines will facilitate our penetration into Northern China. Our aggressive expansion plans focuses on the growth of high-end and high value added modified plastics for automotive applications as they offer attractive margins and at the same time, help optimize our product mix."
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly owned subsidiary Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and distributes modified plastics, primarily for automotive applications. The Company's specialized plastics are used in the exterior and interior trim and in the functional components of more than 30 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. The Company's wholly-owned research institute is dedicated to the research and development of modified plastics, and benefits from the cooperation with well-known scientists from prestigious universities in China. As of the end of December 31, 2009, 145 products that Xinda manufactured have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://www.chinaxd.net .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to increase the number of certifications; the Company's ability to introduce new product applications for automobiles; the effectiveness, profitability, and the marketability of its products; the Company's ability to successfully expand its production capacity; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov . These
forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
